Another Great Gold Royalty Town Hall Forum. Thanks for tuning in today from wherever you are. That's the great thing about these town hall forums. You can join in from wherever you are in the world and have direct access to management. Of course, here with us today, we welcome David Garofalo, Chairman and CEO, and John Griffith, Chief Development Officer. Welcome, gentlemen. It's great to see you again and know that your shareholders appreciate the direct communication. After their presentation, we'll have a moderated Q&A session. Please let us know where you're from in the chat section, and don't forget to place any questions you may have to management in the Q&A section. Also, very important, I would remind everyone to please fill out the questionnaire before you leave. This questionnaire is crucial for Gold Royalty as it helps with investor communication. Oh, sorry.
David and John will now provide you with an update. Gentlemen, over to you.
Thanks, Joanne. Good morning, everybody. I'm delighted you're able to join us to talk about our fiscal third quarter results, which were a record, by the way, and we'll get into a bit more detail a little later on in the presentation. Record revenues and a very catalyst-rich quarter, as you can imagine, with 700,000 meters of drilling or the equivalent of about $200 million of exploration being invested in our various properties. We have a lot of exploration news to share, a lot of growth in reserves and resources on the horizon, which will only enhance the value of our royalty portfolio. Before I get into that, though, I thought what I would do is just point out our disclaimer. We are making forward-looking statements at your leisure.
Please visit our website where this presentation is posted if you'd like to read this disclaimer in a bit more detail. You know, before I get into the presentation and talk about our results, what I thought I'd do is talk about the macro environment as my custom as we make these presentations on a quarterly basis. I was looking for a unique perspective on the gold price and the macro variables that drive that. I got that yesterday reading a newsletter from Brien Lundin, one of our supporter shareholders and somebody I've frequently interviewed with, if you watch his YouTube channel. What he discussed was the debt service cost the U.S. government is facing, which for me only emphasizes the need for the Federal Reserve to pivot in the short term and start to lower or at least stabilize interest rates.
What he pointed out is, in this very short tightening period that we've already experienced with interest rates going up on a nominal basis, debt service costs in the U.S. have more than doubled to about $1 trillion per annum. These are still relatively low nominal rates. That represents more than a dollar out of seven dollars in the U.S. government budget. You can imagine with a small tightening in interest rates, what that could do to debt service costs. That's the biggest economy in the world.
If it's putting that on thin ice, you can imagine what's happening in the developing world and smaller economies around the world as interest rates start to go up on a nominal basis and debt service costs go up exorbitantly and a greater and greater proportion of government revenues get devoted to servicing those costs. To greater emphasize what that could do to the economy, debt as a percentage of GDP is over 325% globally right now. That's more than 3x what it was in the last big inflation cycle back in the 1970s. There was a lot more latitude for the central banks back in the 1970s to raise nominal rates.
In fact, nominal rates went up to, you know, almost 20% at the time, well in excess of what inflation was, which was double-digit back in the 1970s. There certainly isn't that kind of scope for the Federal Reserve or central banks generally to raise interest rates dramatically, certainly not in excess of inflation to tame inflation. What I think will happen in the short term, which emphasizes our call on gold, is we do see the Federal Reserve and central banks globally starting to slow their tightening cycle and in fact, probably reverse course, and that will only exacerbate the inflationary cycle that we're experiencing. We're likely to be in there for longer in terms of inflation.
It's going to be higher than what the headline numbers have been recently, and that's, you know, deeply constructive for the gold price and likely to result in gold price achieving all-time highs, well in excess of $3,000 that we experienced in today's dollars back in early 1980s. We're not even close to where the cyclical high in real terms is for gold. We're not nearly near the cyclical high for inflation that we're likely to experience given the limited latitude the central banks have globally to raise interest rates. As I'll talk about a little later on, the best place to be to play that gold bull cycle is in the royalty and streaming business.
In this inflationary environment, where mining companies, frankly, are not immune from cost inflation, and we've seen a steady parade of mining companies report enhanced costs, re-guiding their costs multiple times this year upwards as a result of inflation. That only emphasizes the pressure that puts on their margins, while royalty and streaming companies provide that insulation from cost inflation as our exposure is entirely to the top line. We get optimum exposure to the gold price while protecting you, our shareholders, from cost inflation in the industry generally. The great and unique part of our story is we have sector-leading growth in revenues, and that was only emphasized with our record revenues in the last quarter. Likely to achieve 60% compound average growth over the next several years as a number of our assets come into production.
We have eight producing currently, another 20 in various stages of development construction, which underpins what's already sector-leading revenue growth. Beyond that five-year horizon, we have a number of very large, chunky assets coming into production, including the Odyssey underground extension of Canadian Malartic, the largest producing gold mine in Canada. What we offer is diversification, which no producing company can hope to offer to the degree we can. We have 198 royalties. That number continues to grow. When we last spoke, it was several royalties smaller than that. We were about 195. We continue to add at a very accretive and cost-effective basis, additional royalties as we generate our own royalties internally, and we continue to look for new opportunities to acquire royalties in the sector. That kind of diversification simply doesn't exist in operating companies.
Even the biggest mine operating companies in the world can't hope to operate more than 12-15 mines across their entire portfolio. There's a lack of diversification in those assets. If there's a problem in any one of their individual operating assets, that's likely to impact their share price quite negatively. We do offer diversification. We offer that top-line exposure. We offer insulation from cost inflation. We also offer exploration for which we pay nothing. Our operating partners are investing $200 million this year in 700,000 meters of exploration drilling in and around their existing deposits. That means that their reserves are likely to grow, and we're gonna enjoy that upside entirely without exposing our shareholders to those exploration expenditures. There are companies out there in the royalty space that are a bit of a hybrid.
They provide royalties, but they also invest money in the ground in exploration. We think that completely undermines the value proposition of a royalty company. If they're spending money on exploration, then they're exposing their shareholders to cost inflation, which exploration companies are facing in this inflationary environment. We don't do that. We do have staked exploration claims, but before any dollars are required to be invested on the ground, we farm those properties out to the explorers, the developers, the operators, and we take a royalty back. We never invest any meaningful capital in the ground. We allow our operating partners to do that, and again, insulate our shareholders from that kind of cost exposure and the risk that exploration brings to the table. We don't expose our shareholders to that type of risk, both financially and technically.
We still have a strong balance sheet, a strong trading liquidity, $17 million of cash and marketable securities. We have a $25 million credit facility, including a $15 million accordion with Bank of Montreal. As our cash flow gets enhanced, we'll have increasing access to that whole facility. Watch this space. We're likely to extend the maturity of that facility with BMO. We're actively negotiating that right now, beyond its maturity next year. We talk time and again about our management team and board and what it brings to the table. With collectively, we have 400 years of experience in our management board, largely in the operations and development of mines. We offer a unique value proposition.
We understand how operators and developers think because we've been them, we've been in their shoes, and we're able to appropriately price the risk underlying the assets they're trying to develop so that we can appropriately price or pay for these royalties and not expose our shareholders unduly to the risk associated with development and operations. Let's talk a little bit about the inflation cycle. I touched on this a little earlier on in the presentation. As you can see, interest rates continue to dive deeper and deeper into negative territory on a real basis. Yes, nominal rates are going up. The central bank on a monthly basis is raising the nominal interest rate, but inflation continues to accelerate. Real rates, as you can see in the bottom line chart, continues to go deeper and deeper into negative territory.
As I said, given that the Federal Reserve and other central banks globally are likely to pivot and reduce nominal interest rates so they don't overwhelm their governments with debt service costs, we're likely to see that real interest rate number go deeper and deeper into negative territory. The gold price hasn't nearly responded as it has in past cycles when real interest rates have gone down. If you look back at the big last inflation cycle, several decades ago, we saw the gold price go up 300%-400%. Even coming out of the credit crisis when interest rates were going down, both on a nominal and real basis, we saw similar upward trajectories in the gold price.
We haven't even come close to achieving previous cyclical increases in the gold price that we've experienced in the last cycles of declining real interest rates. We're a long way away from cyclical highs from gold. We're likely to be in a prolonged bull cycle given the need for central banks to continue to drive down interest rates in order to maintain reasonable debt service costs, which will only again accelerate inflation and drive up the value, the intrinsic value of gold, which is the one currency you can't print. We've seen what inflation has done to our economy, with goods up about 16%, transportation, warehousing up 21%, energy up 36%-37%. That will continue to accelerate.
Gold, it provides you a haven against that type of inflationary cycle because of its very finite quantity, its scarcity, in contrast to some of the other fiat currencies we've seen, which continue to be increased in volume, both in terms of cryptocurrencies, in terms of government fiat currencies. We're seeing continued increases in supply of those, whereas gold is becoming increasingly difficult to mine, supply is going up less and less every year, and reserves are down 40% from their peak that we saw back in 2012. Royalty companies, again, provide that unique value proposition in that we expose you to the top line. In other words, we take a percentage of the revenue, but we don't expose our shareholders to operating and capital cost inflation. We do it with a very small headcount.
We have seven full-time equivalent employees. You know, contrast that to Barrick with over 20,000 employees, Newmont with over 14,000 employees, Agnico with over 11,000 employees. We have a very scalable model, and I have every confidence we could run our business with the same seven employees, even if we were 10 times the size and we had 1,000 royalties. We don't need any additional people on staff in order to do that. When we require subject matter expertise, we contract it out when we're doing due diligence on opportunities. Those costs are transient, transitory and not permanent part of our cost structure. That means as our revenue grows, we have a better and better prospect to provide higher and higher dividends. We pay over a 1% yield at current share prices.
Given that revenue growth that we're forecasting over the next several years, I have every confidence, given the fact that we're insulating our shareholders from operating capital cost inflation, that our net will increase and our ability to pay dividends will increase over time. You can see what that's translated to in terms of historical performance for royalty and streaming companies in the sector. This is over ups and downs in the cycle because it's a low-risk way to play the gold cycle. It provides you, again, that optimum upside, optimum leverage to the gold price, while completely protecting you from cost inflation, both in operating and capital costs. That's really the value proposition of royalty companies generally.
Coming out of the big increase in gold price in the last cycle, coming out of the credit crisis, when it went up almost 140%, we saw producers vastly underperform the commodity because of the inflation we saw in input costs coming out of the credit cycle. I think we're in a similar phenomenon right now. We're likely to experience that again among the producers, and we have been experiencing that, as recent quarterly results have demonstrated for the mining producers globally. We saw streaming and royalty companies not only significantly outperform the producers, but we saw that royalty and streaming companies outperform the commodity Severalfold, times over. That's the, again, the value proposition of investing in a royalty and streaming company, particularly in an inflationary environment we're experiencing currently.
The value proposition in Gold Royalty, I think is immense. One, we've been rapidly achieving scale through our consolidation efforts in the sector. We've grown from 14 to nearly 200 royalties from our IPO a year and a half ago to today. We are achieving that scale, but we're still significantly discounted relative to our peers. I can assure you that we will make every effort to continue to scale and increase our relevance to institutional investors. That, we think that ultimately will realize a significant re-rate in our multiple. Typically, the big guys in the space, whether it's Franco, Wheaton, or Royal Gold, typically trade at two to three times the underlying net asset value of their business.
That's the re-rate potential as we are trading currently, by consensus estimates at about 0.5x our net asset value. As we achieve that scale, that diversification, as we realize the growth in our revenues over the coming years, we're likely to achieve a re-rate over time, that we hope will match what the seniors in the space will achieve through the growth in our revenue, through the growth in the scale of our business, the growth of our royalty, diversification of our royalty portfolio. That's the opportunity, value opportunity that we see in owning Gold Royalty. We're paying you to wait. With over a 1% dividend yield, we're paying you to wait for that re-rate. That's a re-rate that's unlikely to be achieved among the large cap companies.
That's the value of owning a smaller cap company and rapidly growing smaller cap company like Gold Royalty, relative to owning the larger streaming royalty companies that really do not have the potential to achieve a re-rate as they're already priced at a premium in the marketplace. As I said, we've been rapidly going about achieving that scale. We've been the consolidator of choice in the space. We absorbed last year Ely Gold Royalties, Abitibi Royalties, and Golden Valley Mines and Royalties, and then we financed the construction of the Bullfrog mine with Monarch Mining Corporation. In partnership with them, we acquired a royalty on Côté, which is IAMGOLD's newest gold mine, which will be producing in 2024 and will become Canada's second biggest producing gold mine.
Within Gold Royalty's portfolio, you have exposure to the biggest producing gold mine in Canada in Canadian Malartic, the second biggest gold mine in Canada in Côté, and the underground extension of Goldstrike, Ren, which is the U.S.'s biggest producing gold mine. This is not just about quantity of royalties. Yes, we have significant diversification, 198 royalties, but it's also about the quality of our portfolio. We have multi-decade foundational assets in Canadian Malartic, in Côté, and in Ren, the underground extension of Goldstrike, that will provide a meaningful annuity for our shareholders for many decades to come. It's about diversification, quantity, but also quality with big chunky assets to provide us a meaningful source of revenue and revenue growth over many, many years to come, which underpins our ability, we hope, to increase our dividend over time.
Just briefly touching on the quarter, we achieved record quarterly revenue of $1.9 million, $3.1 million for the nine months. That compares to zero last year. As you'll recall, when we did our IPO, we had 14 development stage royalties. Through our consolidation efforts, through the financing of Beaufor, Côté, we've been able to enhance our revenue and introduce a dimension of revenue that we didn't have at our IPO. It's a rapidly growing revenue profile expected to achieve above 60% compounded annual growth over the next several years that underpins that dividend and underpins the potential for that dividend to grow over time.
As I said, we ended the quarter with a little over $17 million of cash and marketable securities, with accordion available to us at $50 million under certain conditions, which will further enhance our liquidity and our ability to access capital as we look at more and more royalty opportunities that continue to enhance the diversification, the quantity, and quality of our portfolio. With that, I think I'll hand it over to John to talk through some of the specifics in our portfolio, and I'd be delighted to take questions at the end of the presentation. Thank you so much for your attention this morning. John?
Thanks, Dave. You know, as David mentioned, our expected revenue growth over the next three years is approximately 60% on a compound annual growth rate basis, and this is all based on analyst consensus estimates. We've currently eight producing royalties, and we forecast this figure will increase to 12 producing royalties by 2025. The additional royalties that we anticipate coming online would be the Odyssey project, Côté, South Railroad, and Gold Rock. Beyond 2025, we expect significant further growth as additional key development assets come online. The ramp-up of Odyssey, coupled with the anticipated development of world-class assets such as Ren and Fenelon, will further fuel our revenue growth into the back half of the decade.
If we take a look at some of our key royalties, Odyssey, Côté, and Ren represent cornerstone development assets within the portfolio that not only will underpin our revenue growth in the near term, but also provide longevity in our portfolio. These are generational assets that will provide cash flow to Gold Royalty and our stakeholders for decades. Turning to the Odyssey project, over which we have a 3% NSR royalty. On July 7th, Yamana disclosed that permitting on the project remains on schedule while construction is on track and on budget, with first production from Odyssey South expected in the first quarter of 2023. On July 27th, Yamana also announced positive exploration results from the Odyssey project, which it expects could significantly expand the project's inferred resource envelope.
Turning to the Coté Gold project, on which we own a 0.75% NSR, IAMGOLD announced a project update on August 3rd, including updated costs to complete project economics and life of mine plan to be included in a new technical report for the Coté Gold project. The updated mine plan outlined an 18-year mine life with initial production expected in early 2024 and average annual production of 365,000 ounces over the life of mine, with an average all-in sustaining cost of $854 per ounce of gold sold. Costs to complete increased to just over $1.9 billion. However, Gold Royalty, as an NSR holder, is insulated from this cost escalation or inflation.
Turning to Ren, where we have both a 1.5% NSR and a 3.5% NPI, Barrick announced on August 8 that resources at Ren are expected to grow in 2022 as the project advances towards feasibility. Western side drilling of the new 1.5-kilometer Corona Corridor shows continuity of the mineralization 250 meters from infrastructure. Mineralization remains open at both JB and Corona corridors, and we remain excited at the prospect of what Ren will do to contribute to the future of the Goldstrike Mine. We have some exciting updates this quarter which include the commencement of production and the first gold pour at Beaufor. We previously financed Monarch Mining in mid-2021 and again in March this year in support of the planned restart of the Beaufor mine and Beacon mill.
It's enormously gratifying to see the success made by Monarch, and we have confidence in their operating team to ramp up production at Beaufor. We would add that the recent exploration success outlines the future upside in the project. Another key update is the confirmation of royalty payments from the Borden mine. Borden is a cutting-edge mine operated by Newmont as part of the larger Porcupine complex. Borden has produced over 100,000 ounces a year the past two years, and current mine life extends to 2027. Beyond our key development and producing assets, the exploration upside in our portfolio is incredibly exciting, but we also feel vastly underappreciated. Across our nearly 200 assets, as Dave mentioned, we expect over 700,000 meters of drilling to be completed on our portfolio in 2022.
This will provide significant catalysts for our portfolio in the years ahead. All this exploration investment, which is the equivalent of roughly $200 million, comes at no cost to Gold Royalty. Beyond the significant exploration upside, this map highlights just how robust our geopolitical profile is with the vast majority of our assets located in some of the very best mining jurisdictions in the world. In summary, we had another stronger quarter as our company continues to grow. The fundamentals for gold are strong, and the royalty and streaming model has historically been the best way to gain exposure to rising gold price. Our portfolio is focused on world-class assets. Our revenue growth is peer leading, and the exploration investment by our operating partners will continue to fuel strong growth through the back end of this decade and beyond.
Our balance sheet is healthy, and our team continues to assess multiple opportunities to accretively grow the portfolio. With that, I'd like to thank everyone for their time, and we'd be very happy to take questions.
Hello, gentlemen. Thank you very much for that update. That was really great. We're going to move to the Q&A portion, and just going to the published Q&A here. We've got some really great questions lined up. The first one is, Can you comment on the consolidation taking place now in the royalty space? Do you see Gold Royalty continuing to acquire other such companies?
John, why don't you handle that one?
Yeah, great question. I think, we'd start off by saying, you know, we obviously feel like, we kicked over the ants nest with consolidation, having acquired three companies last year, and it's gratifying to see that others are following suit. There are a lot of companies competing for assets, competing for capital, and we think that consolidation is the right way to really achieve the scale that Dave was talking about, to attract the right kind of investors and to see that accretive multiple. Certainly, I think we would take our hat off to some of the transactions that have been done. You know, I think, you know, it's almost a sign of flattery that others are following suit.
I also would say that we never felt that we had a complete monopoly on consolidation. Having said that, I think some of the transactions that have taken place have been to really address some structural challenges in some of our peer group companies, reducing operating risk, as an example, and tidying up portfolios. The short answer is yes, we see more consolidation and absolutely we will continue to pursue accretive opportunities when they present themselves to continue to grow our portfolio.
Excellent. Here's another M&A question, but more specific. With an increase in the M&A sector, is Gold Royalty still looking to acquire another royalty company? In particular, would Orogen Royalties, which is primarily focused in the Americas, be an attractive target, particularly with their assets in, I believe it's Ermitaño in Mexico and Silicon in Nevada?
Joanne, what I would say is we would never comment on any specific company or opportunity, and I think the best way to really frame the answer to that question is to emphasize again the multiple prongs of our M&A strategy, our growth strategy. We start off with the ability to generate royalties organically, and we've continued to grow the portfolio in that manner. We also look to acquire or write new royalties to provide capital to facilitate either growth or the reopening of a mine, for example, with Monarch Mining. I think Beaufor is a great example of that type of transaction. The next element is acquiring existing assets that are currently owned by third parties.
Our royalty on Cote Lake is an example of that, and certainly, there are plenty of opportunities that we're seeing. Finally, we continue to look at consolidation. If I reference back to the first question, we certainly see more corporate consolidation on the horizon, whether it be Gold Royalty participating or some of our peers.
Thank you, John. Next question is, when do you think your royalty stream acquisitions will level off relative to your cash flow, thereby enabling you to pay a more significant dividend?
Look, I would say that at over 1% yield, we're up there near the top of the heap in terms of return of capital to shareholders. Given the growth that we have in our revenue portfolio over the next five years at about 60% annual compounded growth projected, that gives us a lot of latitude to increase the dividend over time. Particularly given that our cost base is actually quite fixed. As I said, we have seven full-time equivalent employees. I have every confidence we could run a business much larger than what we have today with the same complement of employees. That means that every incremental $1 of revenue essentially goes to the bottom line and gives us greater potential to pay a dividend over time.
Thank you, David. What is Gold Royalty doing from an ESG standpoint? Is this something the company is focused on?
Yeah, I can touch on this. We actually just hired a head of ESG, Katherine Arblaster, who joined us from Deloitte, where she was one of the senior partners in the ESG practice there. She will be working towards filing and publishing our first ESG report over the course of the next year. We're well equipped in that regard. We're very, very diligent in terms of our ESG criteria for any new investment we make in royalty opportunities. We've passed on multiple opportunities because of what we felt were not up to standard ESG practices by some of the operators of the projects we looked at.
We're quite scrupulous in terms of what we invest in, but now we have equipped ourselves from a human resource standpoint to provide that ESG expertise internally and to report back to shareholders on our progress on ESG principles.
Thank you, David. Another question. With the recent approvals of the $250 million and $50 million prospectus filings, can you comment on the quantity of deal flow we have investigated since Elemental? And have we come close to any successful negotiations?
Yeah, look, we're at, as John said, we're in a perpetual state of due diligence on royalty opportunities. We're perpetually in a state of generating our own royalties internally. We have Jerry Baughman in Nevada, Glenn Mullan in Canada, continually staking exploration claims in those districts and generating royalty opportunities organically and effectively cost free, internally. I would say those filings that we made are not indicative necessarily of what's coming down the pipe. It's meant to provide us an efficient avenue for us to raise capital when we do find opportunities to invest in.
Thank you, David. Here's another question which I believe you touched on a little bit in your presentation. Other than the strong U.S. dollar, what do you believe is holding the gold price back despite bullish macro gold factors such as increasing negative real rates, increased global tensions, and unprecedented levels of debt at all levels?
Yeah, there has been a flight to the U.S. dollar, and that's an interesting point, because if you look at the gold price in other currency terms, whether it's the euro, the Australian dollar or other major currencies, gold has actually achieved all-time highs in all those other currencies. So gold is reflecting the macroeconomic environment that we are facing right now in terms of high inflation, low real interest rates in other currencies. It's inevitable that it'll do the same in U.S. dollar terms, because as I said earlier on, U.S. government in particular is facing extrapolating increases in debt service costs, as we've seen a doubling recently on very small increases in nominal interest rates and debt service costs to the point where one out of every seven dollars of U.S. government's budget is going towards debt service.
That's likely to dwarf all other expenditures in the near term as the Federal Reserve pursues a tightening in nominal interest rates in the short term. Inevitably, they'll have to pivot, and I think what'll happen is you'll see a breakdown in the U.S. dollar because there's no incentive to own U.S. dollars in the face of declining yields. Certainly, we're seeing declining yields on a real basis, which means that inflation, which is quite insidious, is eating away at capital. If you own treasuries and you're earning 3% or 4% on treasuries while inflation's 10%, your capital is shrinking every day that you own a treasury bond. That's likely to result in a flight away from fiat currencies generally, including the U.S. dollar, back into the ultimate currency, gold.
Thank you, David. Why did Gold Royalty file an ATM? Are you going to dilute shareholders?
Quite the opposite. We've actually been paying capital to shareholders. 10 months after our IPO, we introduced a dividend, and we started to return capital because of the significant increase in revenue that we're experiencing and likely to continue to experience going forward, given the eight mines that we have in production and another 20 in development. That ATM and that shelf is designed to provide us a very cost-efficient way to raise capital when we have an acquisition opportunity that's accretive to shareholders. We otherwise won't use those facilities. It's much more cost-effective to do it that way if we have an acquisition opportunity than, say, raising capital through a bought deal where you're paying 4%-5% to the underwriters. With an ATM, you're paying typically under 2%. If you need to raise capital for an acquisition opportunity.
We currently have no intention to use either the shelf or the ATM unless, and if, we have an acquisition opportunity that's meaningful enough for us to tap into the markets, and only if it's accretive for our shareholders.
Thank you, David. I know you touched on the IAMGOLD Côté project in your presentation. Therefore, the question is, IAMGOLD outlined significant capital cost increases at Côté. How does that impact Gold Royalty's NSR on the project?
Well, in fact, it doesn't. That's the beauty of the royalty model, is we are paid a percentage of the revenue, and the costs are absorbed by the operator. IAMGOLD is going to have to find other sources of capital for the increases in capital expenditures. Again, the royalty model provides you that insulation. That's why typically, royalty companies and streaming companies significantly outperform their producer peers in an inflationary environment, because the producers have to absorb those costs. The royalty and streaming companies are completely insulated from most costs.
Thank you, David. Clean energy, critical metals, really hot sector right now. Would you see Gold Royalty enter that royalty sector?
John?
You know, I think it is certainly an area of interest to the market. I think our goal is to provide our investors with exposure to precious metals, and in particular, a focus on gold. You know, there's no doubt that you're right, the person asking the question that the greening of the global economy is an important dynamic. That's not an industry that we're going to participate in. It's not where our expertise lies, and I think our name, Gold Royalty, belies our strategy fundamentally.
Okay. Thank you, John. Okay. Here we have a concerned investor. We have great assets for future earnings, but right now we are still burning cash. Why are we already paying out more cash to pay dividends?
Well, in fact, we're at a position where we're tipping into positive free cash flow over the coming years, given our growth and compounded annual growth rate and revenue. Again, our fixed cost base remains fixed, so we're likely to enter into a position of free cash flow in the very short term. As I said, that gives us the potential to increase the dividend over time, because every incremental dollar of revenue goes to the bottom line, given the fixed nature of our cost base.
Thank you. Agnico and Yamana have focused exploration results on East Gouldie and Odyssey South. Odyssey North and East Malartic have not been mentioned recently. Can you comment on the latest results and what that means for our portion of the royalties there?
I mean, I think that the comments that I made around the progress at Odyssey is all very constructive. In fact, I think production is actually ahead of schedule. You know, we've got an existing resource that's gonna support a mine life, a multi-decade, decade mine life. Expansion of that resource at this point is really gonna extend that mine life many years beyond where we think it currently is, and not really gonna impact the near-term production profile of Odyssey. As I said, I really wanna emphasize that progress, the partnership is making great progress. We're really thrilled with how things are developing, and we don't see any real material change in the near term.
The one thing I would add from personal experience, having built and operated mines in that very district when I was working with Agnico and before that with Inmet, is that as you open up these deposits underground for production, you also open them up for exploration. You get better drill setups. All the drilling up to this point has been limited to surface drilling, and that obviously limits the depth potential of resource expansions. As they get underground, the infrastructure serves two purposes. One is to open up mining stops for production, but also open up areas that we can, or they can set up drill setups in order to start to aggressively drill at depth and add ounces to the areas that are under our royalty coverage over the coming months and years.
Thank you, David. Now we have a question on producing royalties. You mentioned you have 8 producing royalties and will have 12 producing royalties by 2024. Can you tell us which royalties those are?
Yes. I think I did mention it in the comments, but I'll just repeat. So the current eight producing royalties, we've got the Canadian Malartic open pit. We've got two on Jerritt Canyon, an NSR and a PTR. We've got one on the Beaufor Mine, which is an NSR, and one on the Beaufor Mill, which is a per ton royalty. We've got Borden NSR on Isabella Pearl and an NSR on Marigold. The next four assets that are due to come online by 2024 would be Odyssey, the underground expansion of Canadian Malartic, Côté Lake, IAMGOLD's project.
That we discussed. South Railroad, which was recently acquired by Orla, and then Gold Rock, recently acquired by Calibre.
Thank you. And again, here's another question on royalties. I don't know if you have this information at your fingertips, but what is the estimated NAV of the A, 8 producing mines and B, the 20 mines in development stage?
If you look at our overall net asset value on a consensus basis, we're trading somewhere around 0.5-0.6x net asset value, which would indicate that the analysts who cover us, and there are now four, are estimating that our net asset value is somewhere on average between $5 and $6 per share.
Okay, excellent. All right. Where do you see Gold Royalty in the next five years?
Well, ultimately, our vision is to create a mid-tier company where none exists currently. We see the category killers in our space, Franco-Nevada, Wheaton Precious Metals, and Royal Gold are all very, very large companies trading at premium multiples of 2-3x net asset value. What there isn't is that mid-tier company of about $5 billion market cap that is big enough to matter to large scale institutional and generalist investors, but small enough to grow meaningfully. You can imagine how difficult it is for the three large companies to grow meaningfully given how big they already are. It's hard to imagine them going up 2-3x .
Whereas it's easier to imagine a company of our scale trading at about $400 million market cap 0.5x NAV, increasing 4 or 5 or even tenfold with a few judicious acquisitions, accretive acquisitions, and with a bit of momentum in the gold price. There's a lot more torque in our companies, particularly if we're able to achieve scale in a meaningful way to attract that generalist money into the name to continue to enhance what's already a very liquid company.
Thank you, David. Now a question about EPS. Hopefully shareholder writes in, "Excellent results, David. My question is about the negative EPS and the share price. Do you have any strategy focusing on pushing up the current share price of the company?
I do think that we're gonna be meaningfully positive in earnings, going forward as we start to crystallize that revenue growth, because as I said, the cost structure is very, very fixed. Seven full-time equivalent employees, whereas our revenue is likely to contribute to the bottom line dollar for dollar as it grows over the next little while, given the fixed cost nature of that. Our earnings per share number on a normalized basis was $0.02 loss in the last quarter, and that was down considerably from the prior year quarter as our revenue growth is kicking in. We'll continue to see that trend going forward, we believe, as that revenue is crystallized with a number of these development stage assets coming into production over the coming months and years.
Thank you, David. We're gonna start to wrap up, so we have room for just one or two more questions. The next question is, do you think the proposed Russian Moscow World Standard will become a successful alternative to the manipulated LBMA so that gold will be priced more realistically worldwide?
Well, you know, I can't say I'm knowledgeable about that specific standard. What I would say is that there's been a number of currencies that have been introduced into the global economy over the last decade or so, including cryptocurrencies, to capture the imagination of investors to capture capital. I would say what all of them lack is scarcity. The finite nature of gold is really what has underpinned it as the currency of choice and the ultimate currency for 4,000 years. It's very difficult to mine. It's very difficult to produce. It's Mother Nature's currency. So it's very, very regulated in terms of the supply, given the scarcity of it in the Earth's crust. I would say what gold has that the others lack is that scarcity.
We've seen time and again, when fiat currencies are introduced, whether they're crypto in nature or whether they're traditional fiat currencies, there's always the temptation of the arbiters of those currencies to expand supply. That's happened time and again. Ultimately, every fiat currency in the history of time has failed, whereas gold has not.
Thank you, David. That wraps up today's town hall forum. Thank you, everyone, for joining in. David and John, if you'd like to say a few parting words to your shareholders that have dialed in. We have quite a large audience today of 128 people listening to you right now. Perhaps you'd like to say a few words before we really wrap up.
Well, all I'd like to say is thank you for your time. We made a commitment to you when we IPO-ed back in March of 2021 to grow on an accretive basis, and we've delivered on that consistently. Through our acquisitions on the M&A side, through the acquisition of royalties, through the origination of royalties from the ground up on a very cost-effective basis, we've grown from 14 to 198 royalties. We've increased our revenue dramatically. We have the sector leading growth profile of revenue going forward. We're delivering on our commitments to you, and ultimately, the market will start to reflect that in our share price. I appreciate your patience. We're also paying you to stay and be patient with us with over a 1% yield.
While you're waiting for that revenue to kick in and for the market to realize the intrinsic value of our business, we're paying you to hold on as shareholders and for us to hold on as shareholders. As one of the founding shareholders in the company, I've tied up a meaningful amount of my personal capital in this company. I truly believe in what we're doing, and you have my full-time commitment to continue to deliver on that value and have that reflected in the marketplace over time. Thank you again for your attention today.
Thank you, John. I'd like to remind everyone to please fill out the questionnaire before you leave. Again, the questionnaire is crucial for Gold Royalty, as it does help us with investor communications. Thank you again for joining us today. Have a great day, everyone.